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Using an Umbrella Company which pays 80%, 85% or 90%?

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    Using an Umbrella Company which pays 80%, 85% or 90%?

    No matter what the company tells you, it's not an umbrella. You can't retain more than 60% through a legitimate umbrella.

    You are using a tax avoidance scheme.

    Brace yourself for a shed load of grief from HMRC over the coming years.

    If you have any sense, get out now.
    Last edited by DonkeyRhubarb; 23 September 2016, 06:54.

    #2
    Originally posted by DonkeyRhubarb View Post
    No matter what the company tells you, it's not an umbrella. You can't retain more than 60% through a legitimate umbrella.

    You are using a tax avoidance scheme.

    Brace yourself for a shed load of grief from HMRC over the coming years.

    If you have any sense, get out now.

    Well said. Quite why this isn't mandatory advice given to people when they start contracting, I don't... oh, wait, I do know.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

    Comment


      #3
      Please use the limited company method for the avoidance of tax where the legislation directed against it is unenforceable.
      You may even discover that actually the avoidance becomes secondary to the various esoteric pleasures of running a limited company such as record keeping,form filling and the finer points of expenses claims

      Comment


        #4
        The latest trick is not to call themselves umbrella companies at all - they just set themselves up as straight accountants and are very vague as to how much you'll earn with one.

        I'm looking at a website of one this very minute (based in the Isle of Man, but they don't make that visible AT ALL, they have a UK address).

        So it's just the numpties who are still shouting about 90% payback!!!

        The clever ones are helping you to set up your limited company and hiding behind vague promises of 15 - 30 - 50% tax savings (compared to other renumeration options) and 'Sustainable Renumeration Strategies'.

        I'm afraid it's all going to sound very plausible right up to the moment the brown HMRC letter thuds onto the door mat.
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

        Comment


          #5
          What Cojak says, with bells on. The industry simply refuses to go away and die. Probably that is an indication of how lucrative it can be for providers. Even now.
          Public Service Posting by the BBC - Bloggs Bulls**t Corp.
          Officially CUK certified - Thick as f**k.

          Comment


            #6
            90%?? Take my money!!!
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              The supply side measure is outlined in the measures in the consultation against marketers and promoters.
              This penny appears to have dropped at the HMRC
              The missing element is it being retrospective with a will to pursue money and assets abroad.
              It would make it to risky for the agents and officers of these scheme companies and promoters and the schemes would dry up.

              Comment


                #8
                One way to kill these schemes off would be to make agencies, supplying workers to end-clients, liable for any non-compliance. Agencies would then only deal with vanilla umbrellas or the worker's own Ltd Co.

                Some of the bigger agencies already do this, and have preferred umbrellas.

                The fact that the schemes still appear to be viable means there must be quite a lot of agencies out there who don't ask too many questions about how people are getting paid.

                Comment


                  #9
                  Originally posted by DonkeyRhubarb View Post
                  One way to kill these schemes off would be to make agencies, supplying workers to end-clients, liable for any non-compliance. Agencies would then only deal with vanilla umbrellas or the worker's own Ltd Co.
                  I think you mean make agency, etc. directors personally liable for helping others to commit tax evasion.

                  Even if a person resigns as an agency director if the wrong-doings occur under their watch they need to be taken to task.
                  "You’re just a bad memory who doesn’t know when to go away" JR

                  Comment


                    #10
                    Originally posted by DonkeyRhubarb View Post
                    One way to kill these schemes off would be to make agencies, supplying workers to end-clients, liable for any non-compliance. Agencies would then only deal with vanilla umbrellas or the worker's own Ltd Co.

                    Some of the bigger agencies already do this, and have preferred umbrellas.

                    The fact that the schemes still appear to be viable means there must be quite a lot of agencies out there who don't ask too many questions about how people are getting paid.
                    There should be a white list of genuine umbrellas rather than a preferred list; it should not be like a PSL and a contractor should be free to use whichever genuine umbrella company they want.
                    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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